All Forum Posts by: Orkeem Davis

You can respectfully encourage the tenant to find more suitable accommodations, but I will take it a step further and let her know that this is an Open Offer to move out as long as you receive 30-days-notice.  The last thing you need is a 24/7 complaining tenant.  Repairs have to be made, but ongoing looking for discounts and constantly complaining is not okay unless your place is a real dump.  Some tenants seem like they have a sense of entitlement once they pay rent.  Once the tenants move-in, unless noted prior, anything under $100 is the tenant's responsibility as per my lease agreements. Good luck. 

Thank you for the feedback and helping me crystalize my thoughts on this matter. I definitely prefer long-term PITI financing and I have long-term financing on all my other multi-family properties. Like @ Joseph Guzzardi Jr. it is okay for me right now, but that is not my long-term strategy.

I represent that 23% and I have a very successful part-time real estate business and I am a full-time W2 employee --- I have a real estate license and I am a real estate investor. My monthly rental income goal for 2023 is 50k monthly and I am more than happy to announce that I am more than 50% complete at this time and quickly growing. I have a good working relationship with my real estate broker, and I primarily purchase properties for myself to Buy and Hold. I have been a real estate investor for over 15 years, and I have been a real estate agent for over 2 years. I rarely work as a Seller's Agent, but I am a Buyer's Agent on my deals and make a very good return for my time. I pay for access to 4 different MLS listings, and I currently have 21 doors, which are mainly multifamily properties. I host a local Meet-up Group in New Jersey, I am an active advocate of learning more about RE investing, and I enjoy being a real estate investor. I have a high demanding W2 job working 40 hours a week as a Program Director with a for-profit company, and I am making good money $$$. The main question I have for you - What is your long-term goal/s? For me, I just turned 50 and want to retire within the next few years or so. I am willing to work longer as a W2 employee depending on job conditions and convenience. Right now, I am enjoying the dual career.

Long-term goal is to hold for long-term passive income. I really like the idea of focusing on NOI and continuing with forced appreciation though value-add improvements -- thank you all for your feedback!

Hello All,

I have an 8- family apartment building in New Jersey and I currently owe 600k and it has recently appraised at 900k. I have and continue to work on different CAP X Improvements, including new roof shingles, new windows, new sliding doors, landscaping, new appliances, and more. Currently, I have a 5-year ARM interest only loan and I am clearing over 6k monthly after the mortgage is paid.

I decided on this loan product because I wanted to have more cash on hand and the option to pay down the mortgage quickly. Right now, I am trying to decide if I should focus on Forced Appreciation and get the value to 1 million - 1.1 million, pay down the principal, or both? After the 5-year ARM ends, I could realistically be in a financial position to pay off the 600k in full or pay down the principal significantly. Should I refinance to a new 5-year interest only loan and continue with a lower payment? Or do a Cash-Out Refinance with a 30 year-rental loan w/ PITI? Or HELOC? All advice welcome. Thank you.

Yes. Definitely, take time to set-up and learn the pros and cons of having an LLC. Set-up a meet with a CPA and start developing your RE Business with this piece of RE education. This LLC information will not only increase your knowledge, but it will also give you an additional tool for your toolbox. Start operating as a business with an LLC and you will become a stronger investor for sure.

I agree once you reach a certain level with your personal net worth and your RE portfolio is worth a million dollars plus you want to take a serious look into LLC and umbrella avenues - I have both. One part of the RE game that is not talked about as much is the likelihood of being sued increases because it becomes known that you have money. LLC gives you more protection when you are being sued or someone is trying to sue you. Learn from experience in this room, having good insurance, a LLC per property, an umbrella, a good attorney, etc. are in place to protect you when the storm comes. The real game is ASSET PROTECTION.

FYI - You can always Refinance from a Conventional Loan in your personal name to a Rental Loan in your newly formed LLC. LLC Interest Rates will be higher, but this strategy may be worth the investment.

Good luck. 

Not familiar with the area, but I understand how to address your rental ASAP.

1. Hire a new PM.

2. Take some time to reach out to the local Section 8 program for potential tenants.

3.  Make sure you physically visit your investment property.  

4. Post on Affordable housing websites.

Good luck! 

It is very smart to have several streams of income - do both until you are financially independent.  If you decide to engage in RE investing only on a full-time basis, you will be leaving a lot of money on the table by walking away from your W2 income.  Case in point, lenders will opt to give you more money and a pre-approval letter faster when you have a W2 income -- less hoops to jump through.  Fast forward ahead, I did both -- RE investing full-time only for 8 months and RE investing par-time while working full-time in a leadership position for a longer period of time.  Hands down, RE investing full-time a lot of fun.  Currently, I have over 20+ doors and I see the value-add of having W2 income because it gives me the ability to scale faster by having a W2 income while using Other People's Money (OPM).  Good luck.

I'm also a New Jersey real estate investor with several doors.  You need to have a quality home as a rental if you want to attract quality tenants.  It takes money to make more money.  I would strongly advise you to consider upgrading the floors and go room to room making the necessary upgrades -- it will payoff.